Texas Solar Power CompanyTexas Solar Power Companyp yp yAustin, TexasAustin, Texas
Solar Power 101Solar Power 101
Why use SolarWhy use SolarWhy use SolarWhy use Solar
How electricity is How electricity is
generatedgenerated
How energy is usedHow energy is usedow e e gy s usedow e e gy s used
Types of solar systemsTypes of solar systems
What it costsWhat it costs
Q & AQ & AQQ
Why Solar?Why Solar?yyYou & your company care You & your company care about the future about the future –– want want to be good environmental to be good environmental stewardsstewards
S f f il f l S f f il f l Sources of fossil fuel are Sources of fossil fuel are finitefinite
You want to lock in your You want to lock in your You want to lock in your You want to lock in your operational costsoperational costs
You want a reliable, You want a reliable, You want a reliable, You want a reliable, maintenancemaintenance--free systemfree system
You want to “grow your You want to “grow your g yg yown” energyown” energy
and…. and….
Solar Energy is the mostSolar Energy is the mostSolar Energy is the most Solar Energy is the most abundant renewable energy abundant renewable energy in the world. in the world.
Photo = Light Voltaic = ElectricityPhoto = Light Voltaic = Electricity
Thomas Edison toThomas Edison toThomas Edison toThomas Edison toHenry Ford, 1931:Henry Ford, 1931:y ,y ,
“I’d put my money on “I’d put my money on the sun and solar the sun and solar energy. What a source of energy. What a source of power! I hope we don’t power! I hope we don’t have to wait until oil have to wait until oil
d l b f d l b f and coal run out before and coal run out before we tackle that.”we tackle that.”
Some Interesting StatsSome Interesting StatsSome Interesting Stats… Some Interesting Stats… Average commercial system Average commercial system
= taking 4 = taking 4 -- 5 cars off the road 5 cars off the road (reduction of greenhouse gas emissions)(reduction of greenhouse gas emissions)
The earth receives more The earth receives more energy from the sun in just energy from the sun in just one hour than the world uses one hour than the world uses in a whole year.in a whole year.
Solar Systems work wellSolar Systems work wellSolar Systems work wellSolar Systems work wellNo moving parts No moving parts g pg p
No emissionsNo emissions
No water required No water required No water required No water required
(except, perhaps, (except, perhaps,
) )periodic cleaning)periodic cleaning)
GridGrid--tie systems tie systems
are easily managed are easily managed
–– putting power putting power * Some assembly required!* Some assembly required!directly on the grid.directly on the grid.
* Some assembly required!* Some assembly required!
Batteries not included.Batteries not included.
Austin is a great place for Solar! Austin is a great place for Solar! g pg p
What are Solar Cells? What are Solar Cells? Thin wafers of siliconThin wafers of silicon
Similar to computer chipsSimilar to computer chipsMuch biggerMuch biggerggggMuch cheaper!Much cheaper!
Silicon is abundant (sand)Silicon is abundant (sand)Silicon is abundant (sand)Silicon is abundant (sand)NonNon--toxic, safetoxic, safe
PHYSICS: PHYSICS: How to Make ElectricityHow to Make Electricity
Silicone absorbs white sunlight Silicone absorbs white sunlight C l t i t t llid C l t i t t llid Causes electrons in atoms to collide Causes electrons in atoms to collide with each other with each other Activity creates + and Activity creates + and -- chargescharges
Charges collect on to positive and Charges collect on to positive and Charges collect on to positive and Charges collect on to positive and negative solders that lead to negative solders that lead to conductsconducts
What are Solar Modules?What are Solar Modules?Modules or panels are made up of Modules or panels are made up of o es o pa e s a e a e p o o es o pa e s a e a e p o multiple cellsmultiple cells
Two kinds of PV modulesTwo kinds of PV modules
Monocrystalline = whole wafersMonocrystalline = whole wafers
Polycrystalline = composite wafersPolycrystalline = composite wafersPolycrystalline = composite wafersPolycrystalline = composite wafers
What are Solar Arrays?What are Solar Arrays?yy
PV or Solar Arrays are made of a series of PV or Solar Arrays are made of a series of PV or Solar Arrays are made of a series of PV or Solar Arrays are made of a series of connected modules.connected modules.
3 B i S3 B i S3 Basic Systems:3 Basic Systems:
1.1. GridGrid--TieTie2.2. GridGrid--Tie / Battery BackTie / Battery Back--UpUp3.3. Stand Alone or OffStand Alone or Off--GridGrid
GridGrid Tie Systems:Tie Systems:Grid Grid –– Tie Systems:Tie Systems:Feed power into the main load centerFeed power into the main load centerFeed power into the main load centerFeed power into the main load centerCustomers continue to receive power Customers continue to receive power from the grid, but push any excess from the grid, but push any excess power produced by the PV system onto power produced by the PV system onto power produced by the PV system onto power produced by the PV system onto the gridthe grid“Net Metering” monitors the flow of “Net Metering” monitors the flow of power both power both toto and and fromfrom the utility gridthe utility gridpower both power both toto and and fromfrom the utility gridthe utility grid
Net Metering:Net Metering:Net Metering: Net Metering: Electric meter can run both forwards Electric meter can run both forwards Electric meter can run both forwards Electric meter can run both forwards
and backwardsand backwards
Required of all electricity providersRequired of all electricity providers
If you come out ahead, the energy If you come out ahead, the energy
company is not required to pay you at company is not required to pay you at company is not required to pay you at company is not required to pay you at
certain ratecertain rate
Austin Energy pays wholesale rateAustin Energy pays wholesale rate
GridGrid ––Tie Battery BackTie Battery Back--Up:Up:Grid Grid Tie, Battery BackTie, Battery Back Up:Up:
In case of grid failure system In case of grid failure system In case of grid failure, system In case of grid failure, system provides uninterrupted power to provides uninterrupted power to specified loadsspecified loadsspecified loadsspecified loads
Battery bank is designed to meet Battery bank is designed to meet user’s load objective in terms of user’s load objective in terms of
AmpsAmpsRun TimeRun Time
GridGrid ––Tie Battery BackTie Battery Back--Up:Up:Grid Grid Tie, Battery BackTie, Battery Back Up:Up:Additional components used by this Additional components used by this systemsystem
GridGrid--tie Battery backtie Battery back--up Inverterup InverterCharge ControllersCharge ControllersCharge ControllersCharge ControllersBatteriesBatteries
Inverters have both outputs and inputsInverters have both outputs and inputsOUTPUTS are from Batteries or PV OUTPUTS are from Batteries or PV arrayarrayINPUTS are from the load center (grid) INPUTS are from the load center (grid)
Charge batteriesCharge batteriesCharge batteriesCharge batteriesMonitor voltageMonitor voltage
Example of Example of Battery Bank Battery Bank with 14 hours of with 14 hours of with 14 hours of with 14 hours of reserve power reserve power (residential).(residential).
Stand Alone or OffStand Alone or Off -- GridGridStand Alone or Off Stand Alone or Off GridGridDesigned to meet Designed to meet allall power needspower needs
Necessary when location is not served by Necessary when location is not served by power companypower company
D i t i t D i t i t Design constraints Design constraints Surge ampsSurge ampsB tt b k h itB tt b k h itBattery bank amp hour capacityBattery bank amp hour capacityDays of backDays of back--up storage (poor sunlight)up storage (poor sunlight)Square footage for componentsSquare footage for componentsSquare footage for componentsSquare footage for componentsWe use a lot of electricity!We use a lot of electricity!
Majority of Installations:Majority of Installations: GridGrid--TieTieMajority of Installations: Majority of Installations: GridGrid--TieTie
Ideal Location for a Solar InstallIdeal Location for a Solar InstallIdeal Location for a Solar InstallIdeal Location for a Solar Install
South facing roofSouth facing roofTilted to location’s Tilted to location’s Tilted to location s Tilted to location s latitude latitude
Austin = 30.27Austin = 30.27= to a 7 / 12 pitch= to a 7 / 12 pitch
ShadeShade--free area, free area, ,,every day of the every day of the yearyear
Ideal Location for a Solar InstallIdeal Location for a Solar InstallIdeal Location for a Solar InstallIdeal Location for a Solar Install
We can provide the tilt…We can provide the tilt…
ComponentsComponentsComponents Components of a Solar Installationof a Solar Installation
PV Modules produces Direct PV Modules produces Direct ppCurrent (DC)Current (DC)
We use Alternating Current (AC)We use Alternating Current (AC)
Power must be converted from DC Power must be converted from DC Power must be converted from DC Power must be converted from DC to AC with an Inverterto AC with an Inverter
A Residential GridA Residential Grid –– Tie SystemTie SystemA Residential Grid A Residential Grid Tie SystemTie System
Service P l
InverterPanel
DC
PV Meter
AC
A Commercial GridA Commercial Grid –– Tie SystemTie SystemA Commercial Grid A Commercial Grid Tie SystemTie System
ACDisconnectPV Gutterbox DisconnectPV
MeterGutterbox
Inverter Combiner bDC boxDC
Disconnects
PV ARRAY PV ARRAY
How Much PowerHow Much PowerHow Much Power How Much Power Can You Produce?Can You Produce?
Austin Energy offers a fabulous rebate Austin Energy offers a fabulous rebate program: $3.75 per wattprogram: $3.75 per wattp g pp g p
A 23.6 kilowatt system “maxes out” their perA 23.6 kilowatt system “maxes out” their per--year allotment for commercial year allotment for commercial installationinstallationyear allotment for commercial year allotment for commercial installationinstallation
One rebate per year, per One rebate per year, per system (i.e. per meter)system (i.e. per meter)p y , pp y , p y ( p )y ( p )
The following calculations are based on a The following calculations are based on a 23 6 23 6 kW tkW t23.6 23.6 kW systemkW system
How Much PowerHow Much PowerHow Much Power How Much Power Can You Produce?Can You Produce?
System SIZE: System SIZE: System SIZE: System SIZE: 23.6 kW = 23,600 Watts 23.6 kW = 23,600 Watts
Production per HOUR:Production per HOUR:System will produce 23 600 watts System will produce 23 600 watts System will produce 23,600 watts System will produce 23,600 watts per hourper hour
How Much PowerHow Much PowerHow Much Power How Much Power Can You Produce?Can You Produce?
Production per DAY:Production per DAY:Austin averages 5.4 good sun hours per day, so Austin averages 5.4 good sun hours per day, so 23,600 watts x 5.4 hours = 127,440 watt hours per 23,600 watts x 5.4 hours = 127,440 watt hours per daydaydayday
Production per MONTH:Production per MONTH:127,440 watt hours per day x 30.5 days per 127,440 watt hours per day x 30.5 days per month = 3,886,920 watt hours per month, or month = 3,886,920 watt hours per month, or 3 887 kWh/mo3 887 kWh/mo3,887 kWh/mo.3,887 kWh/mo.
How Much PowerHow Much PowerHow Much Power How Much Power Can You Produce?Can You Produce?
One more factor….One more factor….The DC power produced from the system The DC power produced from the system The DC power produced from the system The DC power produced from the system must be converted to AC power must be converted to AC power This process looses power, so “This process looses power, so “deratingderatingThis process looses power, so This process looses power, so deratingderatingfactor” of .77 must be calculatedfactor” of .77 must be calculated3,886 kWh/month x .77 = 2,992 kWh/month3,886 kWh/month x .77 = 2,992 kWh/month, ,, ,
On average this system will generate On average this system will generate On average, this system will generate On average, this system will generate ~ 3,000 kWh per month~ 3,000 kWh per month
Austin Energy Bill Austin Energy Bill ––Example CustomerExample Customer
Average Monthly Usage:Average Monthly Usage:
Energy = 23,590 kW hoursEnergy = 23,590 kW hours
Demand = 52 kWDemand = 52 kW
Ave. Bill = $1,865.65 monthAve. Bill = $1,865.65 month
Yearly Austin Energy ChargesYearly Austin Energy ChargesYearly Austin Energy ChargesYearly Austin Energy Charges
$14,007.79 $8,380.00 $14,007.79
Energy Charge Demand Charge
PV for Example CustomerPV for Example CustomerPV for Example CustomerPV for Example Customer
23 623 6 kW system =kW system =23.623.6 kW system = kW system =
135135 panelspanels135135 panelspanels
PV for Example CustomerPV for Example Customer
23 623 6 kW system =kW system =
PV for Example CustomerPV for Example Customer
23.623.6 kW system = kW system =
135135 panelspanels135135 panelspanels
At At 175 175 Watts eachWatts each
PV for Example CustomerPV for Example Customer
23 623 6 kW system =kW system =
PV for Example CustomerPV for Example Customer
23.623.6 kW system = kW system =
135135 panelspanels135135 panelspanels
At At 175 175 Watts eachWatts each
Power Output Power Output 18,19118,191 Watts ACWatts AC
PV for Example CustomerPV for Example Customer
23 623 6 kW system =kW system =
PV for Example CustomerPV for Example Customer
23.623.6 kW system = kW system =
135135 panelspanels135135 panelspanels
At At 175 175 Watts eachWatts each
Power Output Power Output 18,19118,191 Watts ACWatts AC
ProducingProducing 32,15432,154 kWh per yearkWh per year
Eco Equivalent:Eco Equivalent:Eco Equivalent:Eco Equivalent:43,852 Miles =
5 fewer cars on the road
856856 trees
4Yearly electricity use
of 4 Austin homes
Cost AnalysisCost AnalysisCost AnalysisCost AnalysisDEBIT CREDIT
$166kAustin Energy Rebate $85KPV System Cost
Customer's Out-of-Pocket $81KFederal Income Tax Credit $50K
$31KCost $31KCost
Subsidized 81%Subsidized 81%
Equipment DepreciationEquipment Depreciation
7 Year Schedule7 Year Schedule Year Amount1 $ 69,364
50% Bonus in 50% Bonus in year 1year 1
2 $ 11,0103 $ 9,437
Example based Example based 4 $ 8,0895 $ 13,266pp
on 50% tax on 50% tax bracketbracket
6 $ 13,2667 $ 13,266
BB LiLiBottom Bottom LineLine
Yearly energy Yearly energy savings ~ $3,400savings ~ $3,400At year 25 energy savings value is At year 25 energy savings value is At year 25 energy savings value is At year 25 energy savings value is projected to be projected to be ~ $~ $8,7008,700Payback period in 2 yearsPayback period in 2 yearsPayback period in ~2 yearsPayback period in ~2 yearsAccumulated savings over 25 years is Accumulated savings over 25 years is
$ $164K164K~ $~ $164K164KAverage ROR over 25 years 9%Average ROR over 25 years 9%
Other Financial ConsiderationsOther Financial ConsiderationsOther Financial ConsiderationsOther Financial ConsiderationsAfter the initial purchase, cost of your
i f P l d f 25 power is free. Panels are warranted for 25 years, but typically have up to a 40-year lifespan lifespan.
Solar reduces the peak load on your demand (kW) t(kW) meter.
Solar helps lock in operational costs and hedge against rising energy costs. As the price of energy goes up, savings increase exponentiallyexponentially.
Opportunity CostsOpportunity CostsOpportunity CostsOpportunity CostsIf you had invested your $54,000 in….y y $ ,
AMoney Market Accounts
Chase Bank 2.0%
Wells Fargo 1.76%
U i it F d l C dit U i 3 1% University Federal Credit Union 3.1%
Opportunity CostsOpportunity CostsOpportunity CostsOpportunity CostsIf you had invested your $54,000 in….y y $ ,
*Mutual Funds*
Vanguard Institutional Index 2.21%
Fidelity Diversified International 1.22%
Fid lit M ll 39%Fidelity Magellan .39%*You would have lost on average 7% of your capital
Opportunity CostsOpportunity CostsOpportunity CostsOpportunity CostsIf you had invested your $54,000 in….y y $ ,
C ’CD’s
3 month 3.13%
1 Year 3.62%
3 Y 3 88% 3 Year 3.88%
Opportunity CostsOpportunity CostsOpportunity CostsOpportunity CostsIf you had invested your $54,000 in….y y $ ,
T Bills3 Month T Bill 1.85 6 Month T Bill 2.041 Year T Note 2.22
Federal Funds 2 Year Note 2.545 Year Note 3.2610 Year Note 4.0030 Year Note 4.61
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Questions?Questions?
1703 W. Koenig Lane1703 W. Koenig Lane
512512 459459 94949494Austin, TX 78756Austin, TX 78756
512512--459459--94949494www.txspc.comwww.txspc.com
Texas Solar Power CompanyTexas Solar Power Companyp yp yAustin, TexasAustin, Texas